FORT WAYNE, Ind. (WOWO) — Indiana Michigan Power (I&M) is proposing a major rate reduction that could lower electric bills for its Indiana customers beginning next summer.

The Fort Wayne-based utility says its proposal would reduce customer bills by about $59 million in 2027. For a residential customer who uses 1,000 kilowatt-hours per month, that could mean estimated savings of about $100 a year.

The proposal would also freeze all residential rates on monthly bills for three consecutive years, providing customers with more certainty about their energy costs.

I&M says the plan comes as Indiana’s economy and electricity demand continue to grow. The utility attributes the proposed reductions in part to increased electricity usage and additional revenue from large customers, including data centers.

The company says Indiana customers have already seen two rate reductions during the first six months of 2026.

If approved, the new rates would take effect in summer 2027. The Indiana Utility Regulatory Commission is expected to make a decision on the proposal in June 2027.

Maryam S. Brown, I&M’s president and chief operating officer, said the plan is intended to help customers benefit from Indiana’s economic growth while allowing the utility to continue investing in its electric system.

Governor Mike Braun said the proposal aligns with his administration’s goal of making energy more affordable for Hoosiers while maintaining investment in the state’s electric infrastructure.

I&M serves more than 600,000 customers in Indiana and Michigan and employs about 2,000 people. The utility is a subsidiary of American Electric Power.